Case 2 A Lottery Winner Practices Estate Planning Your good friend, Brandon, has just announced that he

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Case 2 A Lottery Winner Practices Estate Planning Your good friend, Brandon, has just announced that he has the sole winning ticket in the $7 million lottery drawing of last week. Brandon is 60 years old, divorced and lives in Orangeburg, South Carolina. He has two adult children (Nicole and Heather) and four grandchildren. Recognizing that you are not an attorney, and knowing that your friend needs personal fi nance advice, off er some estate planning suggestions regarding the following points:

(a) Assume that Brandon’s taxable estate now amounts to $7,200,000 and after the $3,500,000 exclusion, his remaining estate could be taxed at 45 percent. If he died tomorrow, how much would he owe? Give him that fi gure while off ering him one single piece of advice.

(b) Name two types of trusts that Brandon might consider to reduce his eventual estate taxes and summarize what those trusts might help him accomplish.

(c) Off er Brandon some suggestions for things he might want to put into his letter of last instructions.

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Personal Finance

ISBN: 9781439039021

10th Edition

Authors: E Thomas Garman, Raymond E Forgue

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